The Dow Jones Industrial Average was forced lower after a judge ruled Apple (AAPL) can no longer force developers to use in-app purchasing. However, a UnitedHealth (UNH) dip had an even bigger impact. Roblox (RBLX) and Electronic Arts (EA) popped. Meme stock AMC Entertainment (AMC) also posted a whopping weekly gain.
X
A couple of growth stocks also managed to stage breakouts, despite the challenging action. Floor & Decor (FND) and semiconductor equipment stock KLA (KLAC) both passed buy points.
Meanwhile, Senate Democrats unveiled a plan that could have serious implications for investors if it goes ahead. They have proposed a 2% excise tax on stock buybacks, which could help pay for the mooted massive increase in social-spending.
As an example, it would have cost Berkshire Hathaway (BRKB), which is run by legendary investor Warren Buffett, about $600 million tied to $30 billion in share repurchases if it had been in effect at the time of the repurchases.
Nasdaq Slides As Growth Stocks Slip
The Nasdaq slipped despite strong performance among chip stocks. It closed down 0.9%. Peloton Interactive (PTON) fared best with a gain of almost 7%. Okta (OKTA) lagged most, falling almost 5%.
The S&P 500 also dipped lower, closing down 0.8%. United Parcel Service (UPS) was one of the better performers, rising more than 2%. Kroger (KR) was the biggest laggard, dipping more than 7% on earnings.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34607.46 | -271.92 | -0.78 |
| S&P 500 | (0S&P5) | 4458.55 | -34.73 | -0.77 |
| Nasdaq | (0NDQC ) | 15115.49 | -132.76 | -0.87 |
| Russell 2000 | (IWM) | 221.64 | -2.17 | -0.97 |
| IBD 50 | (FFTY) | 49.71 | -0.54 | -1.07 |
Last Update: 4:08 PM ET 9/10/2021 |
||||
S&P sectors closed mixed, with materials and energy posting the best gains. Health and utilities were the worst laggards.
Small caps also struggled, with the Russell 2000 closing down 1%.
Growth stocks were battered lower, despite a positive start. The Innovator IBD 50 ETF (FFTY) closed down 1.1% Friday.
Dow Jones Today: Apple Stock Dips On App Store Ruling
The Dow Jones Industrial Average reversed lower, and closed at lows after a rally attempt failed. It finished with a loss of 0.8%.
Apple stock was by far the worst performer, dropping more than 3% after a judge ruled against Apple in its legal battle with “Fortnite” maker Epic Games on Friday.
While the tech giant won on nine out of 10 counts, an injunction was issued saying the firm can no longer ban developers from providing links or other communications directing users away from Apple in-app purchasing.
This is a key point, as the iPhone maker takes 15% to 30% of gross sales of such purchases.
Judge Yvonne Gonzalez Rogers did say Apple is not a monopolist and that its business success “is not illegal.”
But while Apple was a factor, UnitedHealth’s dip had an even bigger impact due to the weighting of the index. It was the second-worst performer, dropping about 2%.
Read More: Dow Jones Dips As Apple Stock Falls On App Store Bombshell; Roblox,